Is SoFi Stock a Buy?
After hitting the public markets in June 2021, SoFi Technologies (NASDAQ: SOFI) hasn't really panned out as hoped for investors. Among market traders, interest in tech-enabled businesses, especially unprofitable ones, has decreased, which goes some way to explain why the stock trades down about 59% from its IPO price.
Still, share prices made a partial recovery so far in 2023, trading up 98% and crushing the comparable return of the Nasdaq Composite by a wide margin. If a stock performs this well over a relatively short amount of time, naturally investors are going to take notice. But before rushing to buy, it's best to take a closer look at the bull and bear cases for this popular fintech stock.
There are compelling reasons to own shares
SoFi's latest momentum is impressive. Revenue in the second quarter (ended June 30) jumped 37% year over year, coming in at $498 million. And the current customer base of 6.2 million is up 44% from Q2 2022. That's outstanding growth in its own right, but even more striking given the uncertain economic backdrop. Management even went so far as to raise guidance for the full year. Executives now expect adjusted revenue to be over $2 billion at the midpoint.